* U.S. wheat touches 2-week high on hopes for improved
* Abundant production in key exporting nations caps gains
(Adds comment, detail)
By Naveen Thukral
SINGAPORE, Dec 13 Chicago wheat fell on Tuesday,
with plentiful world supplies capping gains after the market
climbed to a 2-week high earlier in the session on expectations
of improved demand for U.S. cargoes.
Soybeans edged higher after declining on Monday, with
forecasts showing much needed rains in dry parts of Argentina's
"Buyers have plenty of options as there is too much wheat
around," said Phin Ziebell, agribusiness economist at National
Australia Bank in Melbourne.
"Prices came up a little bit on news of higher demand, but
there is no change in fundamental picture of large supplies. You
need a big supply disruption to sustain higher prices."
The Chicago Board of Trade most-active wheat contract
had slid 0.6 percent to $4.14-3/4 a bushel by 0346 GMT, after
touching the highest since Nov. 28 at $4.18-1/2.
Soybeans rose 0.1 percent to $10.32 a bushel and corn
gave up 0.1 percent to $3.60 bushel.
The wheat market rose on Monday on hopes of renewed demand
for U.S. shipments.
Saudi Arabia's main state grain importer, the Saudi Grains
Organization, said on Monday it had bought 725,000 tonnes of
Traders said they expected part of the purchase to be
sourced in the United States, which has struggled to gain
traction in the wheat export market as cheaper supplies have
been readily available from other countries.
Wheat prices in Russia, the world's largest exporter, fell
last week due to stormy weather at the country's ports and as
global benchmarks dropped on forecasts of hefty world
inventories and bumper crops.
Black Sea prices for Russian wheat with 12.5 percent protein
content for December supply were at $182 a tonne on a
free-on-board basis at the end of last week, down $2 from a week
Soybeans were under pressure on forecasts of rains across
key producing areas in Argentina.
Commodity funds were net buyers of CBOT corn and wheat
futures contracts on Monday, traders said. The funds were net
sellers of soybeans and soymeal, while they were net even in
Grains prices at 0346 GMT
Contract Last Change Pct chg Two-day chg MA 30 RSI
CBOT wheat 414.75 -2.50 -0.60% +1.59% 421.24 59
CBOT corn 360.00 -0.50 -0.14% +1.84% 355.88 63
CBOT soy 1032.00 1.00 +0.10% +0.49% 1015.15 50
CBOT rice 9.89 $0.03 +0.30% +1.18% $9.73 58
WTI crude 52.74 -$0.09 -0.17% +2.41% $47.47 69
Euro/dlr $1.063 $0.008 +0.71% +0.18%
USD/AUD 0.7496 0.005 +0.60% +0.50%
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per
RSI 14, exponential
(Reporting by Naveen Thukral; Editing by Joseph Radford)